Snapchat
is facing intense competition from Facebook’s Instagram – especially
for celebrity users – and Kylie Jenner’s tweet comes at a time when
investors are already worried

“Sooo does anyone else not open Snapchat anymore? Or is it just me… ugh this is so sad,” Jenner tweeted.

She
later followed up with “still love you tho snap … my first love,” but
the damage may already have been done, as AFP reported that Snap Inc.’s
shares fell by over 6% in Thursday trading, a loss of about $1.3 billion
in market capitalization.

Citigroup’s Mark May said in a statement:
‘While the recent redesign of its flagship app could produce positive
long-term benefits, the significant jump in negative app reviews since
the redesign was pushed out a few weeks could result in a decline in
users and user engagement, which could negatively impact financial
results.’

After dropping almost 8%, shares in Snap
closed 6% down on Wall Street, and are now back near the $17 price at
which the shares were listed when the company floated on the stock
market.
Snapchat is facing intense competition from Facebook’s Instagram – especially for celebrity users – and Kylie Jenner’stweet comes at a time when investors are already worried.
Snap
has rejected complaints about November’s re-design to its messaging
app, with its boss Evan Spiegel saying earlier this month that users
just needed time to get used to it.
Mr Spiegel had something to
soften the blow, though, with news on Thursday that his total pay last
year was a staggering $637.8m. It is thought to be the third-highest
annual package ever received by a company’s chief executive.
The remuneration was, however, heavily boosted by the award of shares when the company listed on the stock market.
Mr
Spiegel’s basic salary for last year was a more modest $98,078. The
package trails the 2007 and 2008 compensation for Daniel Och, head of
hedge fund Och-Ziff Capital Management.
He received annual packages of $918.9m in 2007 and $1.19bn in 2008.